Legal Question in Credit and Debt Law in Virginia

Re: Paying a debt collector when funds are restrained

Although I do not want to show any unkindness, I'm afraid that both your question and the debt colletctor's response, as you describe it, are both off the mark. None of this makes sense in terms of what should be happening.

First of all, no debt collector can affect your bank account, legally, unless there is already a court judgment against you. They must have filed a lawsuit, and won the lawsuit, most frequently because no one showed up (most lawsuits are won by default). Furthermore, only an attorney can take these actions in court, not a true debt collector.

However, assuming there is a judgment and assuming that the debt collector is an attorney so he can take these actions in court, he must have filed a "garnishment" on your bank account.

The funds are NOT "restrained." Any money that was in the bank account (or which you deposit now) will be paid over to the creditor at "return date" which should be clearly identified in the "Suggestion of Garnishment" form.

Therefore, there is no reason why you would want to pay them anything. On the return date, they are going to get the money that is being held in the bank account. If you do nothing at all, the creditor will receive all of this money, up to the amount of the debt. Therefore, you do not need to take any money from any placed to pay them anything. They will already receive what is in your bank account, if you do nothing at all.

So the only reason to do anything is if you can persuade them to release the bank account early. They will only do this if they are absolutely certain of receiving the same amount of money or more. In taht case, you will have to give them cash or certified funds equal to what they would get if they just waited for the return date.

My suggestion is to simply open another bank account and stop using the old bank account.

Re: Paying a debt collector when funds are restrained

Call them back and ask to speak with the supervisor of the person you last spoke with or someone at a managerial level, explain matters,

and request again that they cash your check so that the matter can be finally settled.